Operates a global restaurant business through a large network of franchised and company-operated restaurants serving food and beverages across more than 100 countries.
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Growing
What McDonald's does
McDonald's operates and franchises restaurants around the world, generating revenue from franchise royalties, rent and fees as well as sales from company-owned and operated restaurants.
Founded
1940
Chicago, Illinois
CEO
Chris Kempczinski
Since 2019
Market cap
$164.09B
N/A
Revenue (FY25)
$26.89B
+3.7% YoY
30-Second Summary
A plain-English explanation of McDonald's business model
If you only remember one thing
McDonald's makes money through a predominantly franchised restaurant system. It collects rent, royalties, and fees from franchisees while also earning revenue from company-operated restaurants. The model allows McDonald's to scale its global restaurant brand while franchisees operate most locations.
Business Segments
Where McDonald's's $26.89B Fiscal year 2025 (ended December 31, 2025) comes from
$26.89B
Fiscal year 2025
51% of revenue ·+8% YoY
40% of revenue ·+2% YoY
9% of revenue ·-9% YoY
McDonald's reports three global operating segments: U.S., International Operated Markets, and International Developmental Licensed Markets & Corporate.
Fiscal year 2025 ended December 31, 2025. Segment revenues total $26.885B, matching consolidated reported revenue.
Business Model
How McDonald's makes money — the ecosystem flywheel
Reach Global Restaurant Customers
Operate & Franchise Restaurants
Strengths & Risks
What makes McDonald's strong — and what could go wrong
Global Restaurant Network
McDonald's operates a global restaurant system spanning more than 100 countries with more than 44,000 locations.
Franchise-Led Model
Approximately 95% of McDonald's restaurants worldwide are franchised, allowing the company to operate a large network with significant participation from local business owners.
Powerful Global Brand
McDonald's has one of the world's most recognizable restaurant brands, supporting customer awareness across international markets.
Large Restaurant Footprint
A large network of restaurants provides broad access to customers across drive-thru, dine-in, delivery, digital ordering, and other channels.
Recurring Franchise Economics
The franchise model generates recurring revenue through royalties, rent, and fees as franchisees operate restaurants under the McDonald's system.
Financial Overview
Fiscal year 2025 (ended December 31, 2025)
$26.89B
+3.7% YoY
FY25
$8.56B
+4.1% YoY
FY25
$7.19B
+7.7% YoY
FY25
McDonald's generated $26.9B of consolidated revenue and $8.6B of net income in fiscal 2025, while free cash flow was $7.2B.
Financial History
5-year trend, fiscal years 2021–2025
$26.89B
+16% since FY21
Business Ecosystem
Who McDonald's depends on — and who depends on McDonald's
Franchisees
Independent local business owners operate most McDonald's restaurants under the company's brand, systems, and franchise agreements.
Suppliers
Suppliers provide food, packaging, equipment, technology, and other products and services required across the restaurant system.
Customers
Customers purchase McDonald's food and beverages through restaurants, drive-thru, delivery, digital ordering, and other channels.
McDonald's
Global restaurant platform
Competitors
Companies that compete with McDonald's across global quick-service restaurants, fast-casual dining, coffee, burgers, chicken, and other restaurant categories. Market caps use an October 2026 snapshot.
Starbucks
$107.96B
Global restaurant and beverage competitor with a large international store network and significant franchise and licensed operations.
Chipotle Mexican Grill
$40.94B
Fast-casual restaurant competitor serving Mexican-inspired food across a large company-operated restaurant network.
Yum! Brands
$37.14B
Global quick-service restaurant group operating brands including KFC, Taco Bell, and Pizza Hut across international markets.
The Coca-Cola Company
Operates a global beverage company with a portfolio of sparkling soft drinks, water, sports, coffee, tea, juice, dairy, and emerging beverage brands.
Walmart Inc.
Operates a global retail and membership business through stores, eCommerce, and digital services.
Costco Wholesale Corporation
